Post Tagged with: "Property"

Report: Construction Spending hits Record Amount in Southwestern Utah

Two engineers planningConstruction spending in Southwestern Utah, including for industrial supplies online or offline, reached a record amount in 2017, according to an NAI Excel report.

The report based its analysis on residential and commercial construction projects such as houses, hotels, offices and retail buildings.

Slow Recovery

NAI managing director Neil Walter described the record-high construction spending in Southwestern Utah as a “slow moving” expansion since 2010. Aside from building activity, the level of spending has been beneficial to the real estate market as well.

Property prices have climbed, while vacancy rates for residential and commercial buildings have remained at favorable numbers. Multifamily vacancies, for instance, have stayed below 1%. The declining vacancy rate also led to the expected addition of around 900 more housing units in 2018. Another benefit of the high construction spending involves jobs. The Department of Workforce Services expects the creation of more jobs this year, due to a positive outlook of most construction firms on the strength of the construction sector in the state and nationwide.

Construction Outlook

A majority of the construction firms in the U.S. expect higher demand for all services in 2018, according to Stephen Sandherr, Associated General Contractors of America (AGC) CEO. For this reason, these companies intend to hire more people to meet the projected growth in demand.

The AGC and Sage Construction and Real Estate’s survey showed that 75% of the respondents plan to expand their workforce this year. American contractors believe that the private office market will account for most of their projects. Transportation- and retail-related construction projects ranked next to their list, followed by water and sewer infrastructure.

Conclusion

A record-high increase in construction spending arguably benefits economic and job growth, as well as provide business to enterprises that depend on building projects. Where do you intend to launch your next project this year?

February 8, 2018 at 9:00 amDirections

BCREA Predicts Higher Home Prices in Metro Vancouver in 2018

a house in Vancouver, CanadaHomeowners in Metro Vancouver may find it difficult to sell their properties in 2018, although prices are expected to increase 4.6% to an average of 745,300 in British Columbia for that year, according to the BC Real Estate Association (BCREA).

Housing Market

BCREA’s prediction aligned with Royal LePage’s expected increase in property values in 53 cities in Canada. The real estate firm expects average prices to climb 4.9% to almost $662,000, while the Royal Bank of Canada moderated its average price increase forecast at 2.2% to more than $500,000 nationwide. Experts agree that renovation projects, such as installing wood baseboard moldings or repainting, can further increase home prices this year.

Slower home sales will occur in 2018 due to some market headwinds, according to BCREA chief economist Cameron Muir. These include higher interest rates and stricter mortgage qualifications, which may deter buyers from pursuing a transaction. However, demand from millennials will be a key factor to uplift the market. Royal LePage President Phil Soper said that there is an “enormous” pent-up demand among children of baby boomers.

A growing population of migrants will also be a trend next year and will contribute to higher prices. Even if investors and homeowners struggle to find buyers, the chances of making a profit from a sale will be significant because of this.

Pricing Factors

Millennial buyers and more immigrants may drive home prices upward, but some underlying factors that affect prices involve housing improvements. Your home may fetch for a higher value on the market with the right upgrades.

It can be as simple as new paint on walls or as extensive as making renovations. You can improve the appearance of rooms by adding tongue and groove pine panels. A bathroom or kitchen extension could be another option, although it would require quite a lot of money.

Despite a slower pace of sales activity in 2018, the short-term outlook remains bright for homeowners. Be strategic on timing a sale and you may just close a profitable transaction.

January 3, 2018 at 10:52 amFinance